Over 1000 Employers already involved in redesigning Apprenticeships Over 1.9m Apprenticeship starts this Parliament. We are committed to delivering at least 2 million. 96% Employers who take on an apprentice say their business benefited. £117k Extra income earned by someone who completes a Level 3 Apprenticeship Amount we invested in Apprenticeships last year Return for every pound that Government invests in Apprenticeships £1 £28 Number of ‘full Apprenticeships’ has trebled since 2009/10 £1.5 bn Over 220,000 Workplaces already offering Apprenticeships At least 12 months Duration for Apprenticeships 11 out of 11 Industrial Strategy sectors covered by our Trailblazers New Higher Apprenticeships In occupations like space engineer and pilot 68,000 Apprenticeships in smaller businesses supported by our Grant for Employers Over 20,000 Apprenticeships pledged during National Apprenticeships Week 2014 Over 50 sectors involved in developing new Apprenticeships Organisations representing half a million businesses support our reforms

The previous system was inflexible and didn’t lend itself to innovation – overly detailed specifications, huge number of qualifications.  Richard Review (2012) suggestions:  Hand purchasing power over to the employers  Give apprentices real, transferable skills  An apprenticeship must make someone competent and employable in that occupation – not a stepping stone to another apprenticeship  The final test should be holistic, real-world based, and at the end of the apprenticeship

 We are committed to employer routed funding and growing and improving apprenticeships. In the current interim trial, funding will be routed to employers via their lead provider. However, we are investigating mechanisms to give the funding directly to the employer.  We are taking the time to consider the responses to the recent funding reform technical consultation on employer routed payment methods and will publish our consultation response before the end of the year. What about the funding?

 Payment schedules will be agreed between employer and provider in the current trial.  Employers will only be eligible for incentive payments (for taking on a year old apprentice; for being an SME; for completion) if they have co-invested.  We will continue to consider all options to ensure that the current reforms are a success.

AY14/15 Funding Model for Trailblazers Core Government Contribution (CGC) Cap - £2 for every £1 from employer Cap 1Cap 2Cap 3Cap 4Cap 5 £2,000£3,000£6,000 £8,000£18,000 Additional incentive payments Recruiting a year old £600 £900£1,800 £2,400 £5,400 For a small business (<50) £500 £900 £1,200 £2,700 For successful completion £500 £900 £1,200 £2,700 Maximum total Government contribution £3,600£4,900£9,600£12,800£28,800 It’s simple! This one grid replaces the pages and pages of different costing formulas that were part of the previous system.

 The first starts on the new employer-led standards are taking place in 2014/15 = we have 300+ starts already!  We will continue to learn lessons from the Trailblazers.  As the new standards are developed and agreed, we will cease funding Apprenticeships under former frameworks.  There will be further opportunities for employers to apply to develop new standards. In 2015 these will be: 12 February, 5 June, 2 October What is the timetable for reform?

 Relationship managers – support and guidance  Employer-led system – you decide: ways of working, standards, assessment plan…  Lesson learnt - taking on board TBs views:  2/3rds end-point;  Grading;  Behaviours in standards